Brandon's Furniture Store buys a sofa at a wholesale price of $97.00. If the markup rate at Brandon's Furniture Store is 40%, what is the total markup for the sofa in dollars?
Explanation: Remember that a markup rate is a percentage of the wholesale price that a store adds to get a selling or retail price. The amount of markup can be found with the following equation: markup rate $\times$ wholesale price $=$ amount of markup Since the markup rate is a percentage, we have to convert it into a decimal first. Percent means "out of one hundred," so $40\%$ is equivalent to $\frac{40}{100}$ which is also equal to $40 \div 100$ $40 \div 100 = 0.40$ Now you have all the information you need to use the formula above! $0.40$ $\times$ $$97.00$ $=$ $$38.80$ The amount of markup on the sofa is $$38.80$.